NCC Shares Rally 5% On Receiving Rs 1,480 Crore LOA For Redevelopment Project
On Monday, March 24, shares of NCC Ltd. obtained as much as 5% after a major deal was won. The company, in a filing, said it had received a Letter of Acceptance (LoA) from Bihar Medical Services and Infrastructure Corporate for the redevelopment of Darbhanga Medical College and Hospital. The actual total price for the contract is 1,480.34 crore.
Darbhanga Medical College and Hospital both order involves extensive redevelopment with a completion timeline for the construction work in 42 months.
The defect liability period (DLP) timeframe, during which NCC remains responsible for rectifying any issues, will extend for 36 months after completion, the company said.
According to the NCC’s internal policy, an order valued at ₹1,000 crore or more (excluding GST) will be classified as a “major order”.
Late investor Rakesh Jhunjhunwala’s wife, Rekha Jhunjhunwala, owned a 10.63% stake or 6.67 crore shares of NCC as of the December 2024 quarter.
Of 14 analysts who have coverage on NCC, nine of them have a ‘buy’ rating, two say ‘hold’, while three have a ‘sell’ rating. The consensus price target implies a potential upside of 28%.
Market Reaction
- Stock Price Movement: NCC shares rose to an intraday high of Rs 215.95, reflecting a positive market response to the announcement.
- Year-to-Date Performance: Despite the recent rally, NCC shares have declined by about 25% year-to-date, contrasting with a broader market rise.
According to TradingView, the price target of NCC Ltd. is between ₹150 and ₹335, and the average target price is ₹305.25. According to S&P Global Market Intelligence, the average target price of NCC Ltd. is ₹301.58.
FAQs:-
Is NCC Stock Good To Purchase?
According to technical analysis indicators, NCC Ltd. is currently in a bullish position.
Is NCC Profitable?
NCC Ltd’s net profit fell -12.45% since last year’s same period to ₹193.18Cr in the Q3 2024-2025.
What Is The Target Of NCC?
NCC Ltd. has an average target of 305.25.
Why Are NCC Stocks Falling?
Because of slow project execution, which was impacted by state elections and heavy rainfall.